Fiat mulls Opel takeover even as it inks Chrysler deal

02 May 2009

The head of Italian carmaker Fiat SpA, which is in the process of acquiring US automaker Chrysler, is reportedly continuing talks with German officials about a possible takeover of GM's Opel unit.

According to reports in the Sueddeutesche Zeitung newspaper and Focus magazine which cited unidentified sources, Fiat CEO Sergio Marchionne is expected to meet German economy minister Kar-Theodor zu Guttenberg and foreign minister Frank-Walter Steinmeier to present a concept for the take over of Opel.

The German government did not confirm the reports.

There was no immediate confirmation from the German government.

GM's restructuring for which it is seeking billions of dollars in government aid from the US administration is believed to include finding investors for its non-core and non-profitable assets.

Meanwhile, Opel has said that it needs euro3.3 billion to see it through the economic crisis, while the German government has said it does not foresee giving direct state aid. Chancellor Angela Merkel has suggested the government could arrange loan guarantees for an Opel investor.